Eisai (Tokyo, Japan) and Nichi-Iko Pharmaceutical (Toyama, Japan) entered into a strategic alliance agreement as well as a share transfer agreement for a capital and business alliance, aiming to expand and grow the generic pharmaceutical business and bring about increased profit for both companies by leveraging the assets and strengths of both companies to their full potential and maximizing synergies.
Under the agreement, Eisai will transfer all shares of Eisai’s wholly-owned subsidiary Elmed Eisai Co., Ltd. to Nichi-Iko incrementally in accordance with progress of the strategic alliance agreement, and both companies will promote cooperation in building Eisai’s Total Inclusive Ecosystem as well as collaboration on the active pharmaceutical ingredient (API) business promoted primarily at Eisai’s Vizag Plant in India.
Elmed Eisai was established as a wholly-owned subsidiary of Eisai in 1996, and with the concept of developing value-added generic drugs that are accessibly priced and easy for patients to administer, has been contributing to the uptake and expansion of generic pharmaceuticals under a co-promotion structure with Eisai.
Nichi-Iko leads the generic pharmaceutical industry as one of Japan’s largest generic manufacturers, and since its establishment in 1965. Currently, Nichi-Iko is aiming to become a top 10 global generic pharmaceutical manufacturer.
Eisai has been expanding its API supply business which focuses on high quality price competitive API by maximizing its use of the various functions of the Vizag Plant in India, including research and development, manufacturing, quality management and audit. The Vizag Plant has high quality manufacturing capacity that is already compliant not only with Japan’s quality standards but also with the high quality standards of WHO.